By Amos Ssemuwemba
The National Social Security Fund (NSSF) has announced an interest rate of 11.5% for the financial year 2023/2024, marking a significant increase from last year’s rate of 10%. This announcement was made during the fund’s 12th Annual Members Meeting held today in Kampala, with Finance Minister Matia Kasaija highlighting the fund’s improved performance and financial stability.
The new interest rate will result in approximately UGX 2 trillion being credited to member accounts, benefitting around 380,000 members. This increase reflects a strong financial year for NSSF, with total earnings rising by 15% to UGX 2.53 trillion, driven primarily by growth in interest income, dividends, and real estate investments. Notably, member contributions also increased by 12.2%, reaching UGX 1.93 trillion.
NSSF’s total assets under management have grown by 19.2% to UGX 22.13 trillion, exceeding its targets. According to NSSF Managing Director Patrick Ayota, the fund’s diverse investment strategy has significantly contributed to this positive performance. Income from all major asset classes has increased, with interest income alone climbing from UGX 2 trillion to UGX 2.34 trillion.
This announcement comes at a time when the NSSF is focusing on expanding its investment opportunities and improving returns for its members. The current regulatory environment, which restricts investment options primarily to the East African region, presents challenges but also opportunities for strategic growth.
